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Microlesson · 5-min read

Service of Documents (Section 20)

# Service of Documents (Section 20)

## Importance

For legal validity of notices, resolutions, and communications, documents must be served in legally recognized modes.

## A. Serving Documents ON a Company / Its Officer

Must be served at the registered office by any of:

  • Registered post
  • Speed post
  • Courier service
  • Leaving at registered office
  • Electronic mode (if prescribed)

### Special Rule — De-mat Securities

Records of beneficial ownership may be served electronically by the depository to the company.

## B. Serving Documents on ROC or a Member

Served by:

  • Post / Registered post / Speed post / Courier
  • Delivery at office/address
  • Electronic mode (if prescribed)

## C. Member's Right to Specific Mode

A member may request a specific mode of receiving documents on payment of fees as decided in the AGM.

## D. Special Rule — Nidhi Company

Shareholder TypeMode of Service
Members holding > ₹1,000 OR > 1% of paid-up share capitalDirect service (post/courier/electronic)
Other shareholdersPublic notice in local newspaper + notice board of the company

## E. Electronic Transmission — Definition

A communication qualifies as 'electronic transmission' if it:

1. Can be retained, retrieved and reviewed

2. Can be converted into tangible form

3. Includes: Fax, email, electronic message boards, other verified electronic communication

## F. Effect of Service — Timing Rules

Document TypeWhen Service is Effective
Notice of meeting (by post)48 hours after posting
Other documentsAt time of delivery in ordinary course of post

## Memory Aid

"Company at RO; Member by AGM choice; Nidhi splits big vs small; Notice = 48 hours after post."

Worked example

### Example 1

Example 1: ABC Ltd posts notice of AGM by registered post on Monday 9 AM. When is the notice deemed served?

Answer: 48 hours after posting → effective on Wednesday 9 AM. The clear-days requirement for AGM notice should be calculated from this deemed service date.

### Example 2

Example 2: A Nidhi company has 10,000 members. Only 200 hold more than ₹1,000 worth of shares. How does it serve general notices?

Answer: The 200 members holding >₹1,000 (or >1% PUSC) get direct service (post/courier/electronic). The remaining 9,800 are served by public notice in a local newspaper PLUS notice board of the company.

### Example 3

Example 3: A member requests that all communication be sent via email. Can the company charge fees?

Answer: Yes. A member may request a specific mode by paying fees determined in the AGM.

⚠️ Common exam mistakes

  • Forgetting the 48-hour rule for AGM/meeting notices when calculating 'clear days' for notice periods.
  • Confusing Nidhi rules with general company rules — Nidhi has the unique two-tier service mechanism.
  • Thinking electronic mode is automatic — it must be 'prescribed' AND retainable/retrievable/reviewable.
  • Missing that the depository can serve beneficial ownership records electronically (de-mat exception).
Bare-Act text Section 20 · Companies Act, 2013 · click to expand
20. (1) A document may be served on a company or an officer thereof by sending it to the company or the officer at the registered office of the company by registered post or by speed post or by courier service or by leaving it at its registered office or by means of such electronic or other mode as may be prescribed...
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